U.S. Tariffs Make Chinese Auto Stocks Nosedive, but Analysts More Sanguine

Analysts say impact of US tariffs on China’s automakers is manageable

Newly manufactured automobiles on the dockside during loading operations at the Port of Barcelona in Barcelona, Spain, on July 27, 2024. Photo: Bloomberg

Chinese auto stocks tumbled sharply Monday after China responded to Trump’s newly announced reciprocal tariffs. However, analysts said the overall impact of rising tariffs on China’s auto industry remains manageable.

Shares of major automakers nosedived. BYD Co. Ltd. closed down 10%, battery giant Contemporary Amperex Technology Co. Ltd. (CATL) dropped 11.46% and Geely Automobile Holdings Ltd. plunged 20.97%.

An industry analyst familiar with auto exports said China shipped 107,000 vehicles to the United States in 2024, up 58.1% year-on-year, with nearly 90% of the exports produced by General Motors Co. and Ford Motor Co. through their Chinese joint ventures.